Sugar gains on mills’ reluctance to sell

Date 30-Jun-2010        Source THE HINDU .BUSINESS LINE        Reporter Our Correspondent        News Id 208

Sugar prices continued to rise for the second day as the mills were unwilling to sell at lower prices. Spot sugar price on the Vashi APMC market increased for the second day by Rs 30- 40 a quintal. Small increase in retail buying supported the sentiment. Naka delivery price rose by Rs 30-40. The sentiments currently are bullish. Arrivals in the terminal market were low at 38-40 truckloads (each of 10 tonnes), whereas loading was lesser than that at 30-32 trucks. Mr Jeetubhai of Sidhdharth Trading Co. said that neither loading pressure nor selling pressure was witnessed on Wednesday. “Mills expect higher price and it seems that they are not keen to sell below Rs 2,600 level. Neighbouring States and upcountry buying is also expected at mill level. Spot market price is still lower than ex-mill input costs. Further, July free sale quota of 14.50 lakh tonnes are considered to be inadequate," he said. S-grade sugar was traded at Rs 2,710-2,780 and M-grade was traded at Rs 2,750/2,860 a quintal. Naka delivery trade was between Rs 2,700 and Rs 2,740 and Rs 2,760 and Rs 2,800 for S and M grades respectively. The mill delivery tender (including excise) was quoted at Rs 2,640-2,680 for S-grade and Rs 2,680-2,720 for M-grade. Maharashtra ex mill prices were: S-grade –Rs 2,540-2,590 and M-grade – Rs 2,580-2,640.